The Permanent Account Number is a 10-digit alphanumeric number that the income tax department can present on a laminated card. The Permanent Account Number gives the department the power to link all the person’s transactions with the department. These transactions include tax payments, wealth, gifts, income, TDS/ TCS credits, FBT returns, and many more.The Permanent Account Number stands as the person’s tax department identification number.
Why is it necessary to have a Permanent Account Number?
The Permanent Account Number will be used on income returns and any communication with income tax authorities. As of January 1, 2005, the Permanent Account Number must be mentioned on challans for any payments due to the Income Tax Department. The Permanent Account Number must also be mentioned in all documents related to the following financial activities.
- Purchase or sale of any property valued at Rs, 5 lakh or more.
- Purchase or sale of motor vehicles.
- An amount deposited in any post office bank account above fifty thousand rupees.
- Opening a new bank account.
- A securities sale and buy agreement valued more than 1 lakh rupees.
- Make a cash deposit with a bank of at least Rs. 50000 in a single day.
- Money paid in cash for travel to foreign countries that total more than Rs, 25000 at any one time.
Who must have a Permanent Account Number?
- Every taxpayer or individual who must file an income return on behalf of someone else must get a Permanent Account Number.
- Someone who has a profession or business where their total turnover, sales, or gross receipts in a given year has been more than Rs. 5 lakhs.
- Someone planning to be involved in a financial transaction where providing a Permanent Account Number is required must do so.
- Submitting a request to install a connection of the phone, including a mobile phone connection.
- Making payments of above Rs. 25000 to hotels and restaurants at any one time over their bills.
Can a Person Obtain or use more than one PAN?
It is totally against the law of obtaining or possessing more than one PAN. For this penalty of Rs.10000/- may be imposed on the person.
Where to apply for PAN?
To improve the services related to the PAN, the Income Tax department has made the UTI Investor Services Ltd (UTIISL) to manage the IT PAN Services Centres in all towns and cities. For the PAN applicant’s convenience in the big cities, the UTIISL has set up more than one service center for the IT PAN.
How to apply for a PAN? Can an application for PAN be made on the paper?
On Form 49 A the PAN application is made. It can be downloaded from the Income Tax Department official portal or NSDL or UTIISL. It can be printed by the local printers or from any other source. The form is also made at the IT PAN Service centers and TIN Facilitation centers.
The application for the PAN can be made on Form 49 A and can be from any source other than the TIN Facilitation centers or IT PAN Service Centers. The application for the PAN can be downloaded from the Income Tax department or UTIISL or NSDL official portal and can be printed from the local printers.
FAQ’s About Pan Card
These are the most commonly asked questions about Pan Card
1. Can an application for PAN be made through the Internet?
Yes, an application for fresh allotment of PAN can be made through the Internet. Further, requests for changes or corrections in PAN data or requests for a reprint of a PAN card (for an existing PAN) may also be made through the Internet. The online application can be made either through the portal of NSDL (https://tin.tin.nsdl.com/pan/index.html) or the portal of UTITSL (http://www.utitsl.co.in/utitsl/uti/newapp/new-pan-application.jsp). The charges for applying for PAN online are the same i.e. Rs. 94 (including service tax) for an Indian communication address and Rs.744 (including service tax) for a foreign communication address, i.e. there are no additional charges. Payment of the application fee can be made through credit/debit card or net banking. Once the application and payment are accepted, the applicant is required to send the supporting documents through courier/post to NSDL/UTITSL.
2. How to find an IT PAN Service Center or TIN Facilitation Center?
Location of IT PAN Service Centers or TIN Facilitation Centers in any city may be obtained from the local Income Tax Office or any office of UTI/UTIISL or NSDL in that city or from websites of the Income Tax department (www.incometaxindia.gov.in) or UTITSL (www.utiisl.co.in ) or NSDL (tin-nsdl.com).
3. What documents and information have to be submitted along with the application for Form 49A?
- Individual applicants will have to affix one recent, colored photograph (Stamp Size: 3.5 cms x 2.5 cms) on Form 49A;
- Any one document listed in Rule 114 must be supplied as proof of ‘Identity’ and ‘Address’; and
- The designation and code of the concerned Assessing Officer of the Income Tax department will have to be mentioned in Form 49A.
4. Which documents will serve as proof of ‘Identity’ in the case of Individual applicants, including minors and HUF applicants?
Copy of school leaving certificate or matriculation certificate or degree of a recognized educational institution or depository account or credit card or bank account water bill or ration card or property tax assessment order or passport or voter identity card or driving license or certificate of identity signed by an MP or an MLA or a Municipal Councilor or a Gazetted Officer; In case the PAN applicant is a minor, any of the above documents of any of the parents or guardians of such minor shall serve as proof of Identity; In case a PAN application is made on behalf of a HUF, any of the above documents in respect of Karta of the HUF will serve as proof of Identity.
5. What is proof of ‘Address’ for Individual applicants, including minors and HUF applicants?
Copy of electricity bill telephone bill depository account credit card bank account ration card employer certificate passport or voter identity card property tax assessment order driving license rent receipt or certificate of address signed by an MP/ MLA/Municipal Councilor / a Gazetted Officer; In case the PAN applicant is a minor, any of the above documents of any of the parents or guardians of such minor shall serve as proof of Address; In case a PAN application is made on behalf of a HUF, any of the above documents in respect of Karta of the HUF will serve as proof of Address.
6. What documents will serve as proof of Identity and Address for other applicants?
Copy of Certificate of Registration issued by the Registrar of Companies or Copy of Certificate of Registration issued by the Registrar of Firms or Copy of Partnership Deed or Copy of Trust deed or Copy of Certificate of Registration Number issued by Charity Commissioner or Copy of Agreement or Copy of Certificate of Registration Number issued by Charity Commissioner or Registrar of Co-operative Society or any other Competent Authority or any other document originating from any Central or State Government Department establishing Identity and Address of such person.